What is the best way for you to buy a house? There are different ways to consider, perhaps as a couple or friends/family looking to purchase a house together to make it more affordable. Whether you are buying a house as a couple or as friends/siblings, there are a few key points to think about before you buy. We also recommend you take a look at our first-home buyers' guide to ensure you are well prepared before you start your journey to buy a house.
Buying as a couple
Craig Pope, from Pope & Co. Mortgages says:
“For a couple it’s fairly straight forward, but you might factor in items such as a prenuptial agreement if going in with separate cash (if one person puts in more than the other for example), ensuring your wills are up to date and you have life and mortgage protection insurance so if something does happen to one person, the other isn't put under pressure.”
It’s wise to get legal advice early on regarding the types of legal agreements for home ownership and what to think about in your particular situation.
Friends/Family - The Best Approach
For friends/family thinking of co-buying a house, we recommend that you discuss your goals upfront.
Will you be buying to live in the house, or will you rent it out? Consider what the exit strategy is if one person wants out? What happens if one person loses their job? How will you cover the mortgage in various situations?
Make sure everyone has appropriate insurance and that you factor in and discuss all the costs involved in home ownership such as paying rates and maintenance.
Have everything written down before you buy so there are no disagreements that could impact your friendship(s).
We recommend seeking legal advice early on regarding your options, and to ensure that the right status is specified on the house title. Rather than buying jointly like a married couple might do, you could consider a tenants-in-common agreement where each person has separately transferable interests.
We can also help with advice around the various mortgage options and what to consider when buying a home together. Contact us to chat on 0800 000 517.